Estonian state forest management co sold 649 hectares of land for EUR 33 mln in H1

2018-08-09

LETA/TBT Staff

TALLINN – The Estonian state forest management company, RMK, sold 649 hectares of land not necessary for the management of state forests during the first half of 2018 for 3.3 million euros.

The 73 land plots were sold in two auctions.

"As of today, 70 land properties have changed hands and appointments have been made with notaries for the certification of transactions concerning the remaining three properties," Andrus Lauren, head of the department for properties at RMK, told BNS on Wednesday.

The money raised will be spent to finance the purchase by RMK of land subject to conservation restrictions.

Three of the properties put up for auction during the first six months of the year did not find a buyer and they will be put up for sale again.

In the next auction, to take place on Aug. 28, 40 land properties with a total area of 409 hectares will be put up for sale with a starting price of 1.1 million euros.

The parliament gave RMK the right in January this year to start buying land plots subject to conservation restrictions. To raise money necessary for that, RMK sells land plots which are not necessary for the management of state forests. The pieces of land were charted during an inventory checking carried out in 2017.

The land plots deemed as not necessary for the management of state forests are separate land plots lying apart from state owned forestland, land plots situated in between built areas, land plots to which there is no access, and agricultural land managed by RMK.

Land under the management of RMK makes up approximately 30 percent of the territory of Estonia and 47 percent of the forestland of Estonia.

RMK's revenue totaled 174.8 million euros and operating profit 48.9 million euros in 2017. The company targets revenue of 185.5 million euros and a profit of 41.3 million euros in 2018.

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